Dear Colleague,

As you have probably seen or read elsewhere,, Governor Bredesen delivered
his 2004-2005 proposed budget to the Tennessee legislature last evening.

The Governor's higher education proposals were better than previously
expected.  While he did suggest a cut of around 1% from appropriated levels
of 2003-2004, the $400,000 reduction for UTC was far less that the 5% or
$2,250,000 reduction widely speculated before the speech.

We will now resume deliberations of the University Budget Committee with
the Governor's suggested appropriation numbers as a major piece of our
anticipated revenue.

The Governor also urged the General Assembly and Higher Education
institutions to provide for 2% raises and an additional 1% one-time bonus
to all employees July 1, 2004.  The Governor suggested, for higher
education,  that the state pay the 1% and that institutions pay the 2% from
tuition and fees - or reallocations.

At UTC, I have asked Vice Chancellors to suggest to the University Budget
Committee possible reductions from areas other than Instruction, Research,
or Academic Support.

In addition to the necessity to find $400,000 to be cut from the other
areas of the budget, I have also asked Vice Chancellors to find an
additional $600,000 that could be reallocated to the three areas listed
above.  Cuts or reallocations sources will be from the following areas:
Public Service, Operation of Physical Plant; Student Services,
Institutional Support; Athletics; and Scholarships.

There was positive news for three Capital Maintenance needs on the
campus.  Nearly $8,000,000 was recommended for major work on improvements
to Grote Hall, a project for improving elevators and fire safety, and work
on the Metropolitan Building.

I ask again your assistance in determining university budget
priorities.  Please communicate directly with a member of he University
Budget Committee, attend the committee meeting, or send your suggestion the
Faculty Senate's Budget and Economic Status Committee.

Thanks,

Bill